As of this week, there were 40 share issues pending or completed on the Toronto Stock Exchange in June. More than half, or 24, involve resource companies – a fact that would have left most experienced market participants slack-jawed in amazement just three months ago.
Something's in the air. Resource companies punished for cash in the past five years have found they are suddenly open for business. They are issuing new shares as fast as they can get them out the door.
Does this mean the market believes commodity prices have found a bottom and the cycle is staring to turn up? With so many of Canada's corporate law firms built to handle extensive resource company client work, there is a lot invested in the answer.
Lexpert contributor Sandra Rubin reports at lexpert.ca/globe.